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Nestlé has recently made a significant investment of over R$ 140 million in Brazil to enhance its logistics and distribution strategy. This investment includes the establishment of a new logistics center in Rio de Janeiro, along with plans to set up two more distribution centers in the near future.
The newly inaugurated distribution center, located in Xerém, Duque de Caxias, covers an area of 10,000 square meters. With 7,000 pallet positions and an annual handling capacity of 24,000 tons, the center is expected to streamline operations by facilitating 8,000 deliveries per year. This will greatly benefit over 300 customers, as the lead time for deliveries will be reduced from 6 to 2 days.
In addition to the center in Duque de Caxias, Nestlé had already opened early last year another distribution center in Nova Santa Rita, Rio Grande do Sul. This facility spans an area of 20,000 square meters and has the capacity to dispatch 150 tons of products daily. With storage space for 8,000 pallets, this center has successfully reduced the lead time for deliveries in the state from 9 to 2 days.
Marcelo Nascimento, Vice President of Supply Chain at Nestlé Brazil, stated that the company underwent a comprehensive review of its distribution network in late 2021. The primary goal was to increase agility and flexibility, especially in terms of delivery times to local retailers. By establishing centers closer to customers in these regions, Nestlé has achieved an average reduction of 60% in delivery lead time.
The new distribution center in Duque de Caxias is strategically located in an area with a vast logistics infrastructure. The region boasts over 1 million square meters of logistics condominiums, primarily occupied by retail companies in the logistics sector, according to data from SiiLA's Market Analytics.
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